6 of the best variable cash ISAs

ISAs may have been hit hard by persistent rate cuts of late, but these accounts remain a viable place to put your cash, even with the personal savings allowance in full swing. Here are the top six.

Opting for fixed rate ISAs is all well and good, but sometimes you want to keep your cash accessible. Variable rate ISAs can offer that kind of flexibility – you're not tied into a fixed rate deal but instead have the freedom to add to your savings pot and access your cash should you wish, ensuring you don't have to keep your money locked away for too long.

It's worth bearing in mind that if you want the best rates you'll often have to give a bit of notice to make that all-important withdrawal, but that could be a small price to pay for such a good return. You'll also find that the providers offering the best rates tend to be building societies or challenger banks, but don't let that put you off! Challenger banks are easily giving high street names a run for their money, so why not give them a go?

To help you decide, we've outlined the top six variable cash ISAs currently available. Some of them offer instant access, whereas others require a bit of notice to withdraw your cash, but either way, you won't have to wait long to get your hands on your money.

AER

Details

Al Rayan Bank Notice Cash ISA

1.55% AER

120-day notice account

Minimum investment of £250

Transfers in and further additions allowed

Withdrawals permitted subject to 120 days' notice (no earlier access)

Transfers out on 120 days' notice or loss

Account can be managed in branch, by post, by phone, online and by smartphone app

Interest paid monthly and must be compounded

Sharia'a compliant account

Taking the top spot is this deal from Al Rayan Bank, paying an indicative profit rate of 1.55% AER to those willing to give 120 days' notice to access their funds. This account welcomes further additions at any time and permits unlimited withdrawals, subject to the required notice period being given, and can be managed via all channels for the height of flexibility.

AER

Details

Coventry BS Easy Access ISA (4)

1.10% AER

Instant access account

£1 minimum deposit

Further additions permitted

Transfers in accepted from the current tax year (cash ISAs only)

Unlimited withdrawals and no penalty for transfers out

Account can be managed in branch, by post, by phone and online

Interest paid yearly

In second place is this instant access deal from Coventry BS, an entirely restriction-free account that offers the height of flexibility – unlimited withdrawals and further additions are permitted, as are penalty-free transfers away from the account, all from a minimum investment of just £1. It can be managed via all key channels, too, giving savers easy access from every angle.

AER

Details

Holmesdale BS Cash ISA 90 (Issue 2)

1.10% AER

90-day notice account

£500 minimum deposit

Tiered rates of interest depending on the balance: 0.75% paid at £500, 1% at £8,000 and 1.10% at £15,000

Further additions permitted (no transfers in)

Withdrawals permitted subject to 90 days' notice. One no-notice withdrawal is also permitted per calendar year

Transfers out on 90 days' notice

Account can be opened in branch or by post, then managed in the same way as well as online

Interest paid yearly

Securing a top-three position is this account from Holmesdale BS, a notice deal which permits unlimited further additions and withdrawals, subject to the required notice period, and it even offers one notice-free withdrawal per year should an emergency arise. It should be noted that the headline rate will only be paid on balances of £15,000 and above, but for those who can invest the full 2016/17 ISA allowance, it could be a highly competitive choice.

AER

Details

Darlington BS Cash ISA Issue 2

1.05% AER

Instant access account

£1 minimum deposit

Further additions and transfers in accepted

Unlimited withdrawals and no penalty for transfers out

Account can be managed in branch or by post

Interest paid yearly

Next up is this simple, straightforward account from Darlington BS. It's a true easy access deal that offers plenty of flexibility, with unlimited withdrawals, transfers and further additions permitted with no notice or restriction. All that from a minimum deposit of just £1, and with a variable rate of 1.05%, it comfortably makes the charts.

AER

Details

Kent Reliance 60 Day Notice ISA Issue 14

1.05% AER

60-day notice account

£1,000 minimum deposit

Further additions permitted

Transfers in allowed (requests must be made within 30 days of account opening)

Withdrawals and transfers out subject to 60 days' notice

Earlier access on 60 days' loss

Account can be opened in branch, by post or online, then managed in the same way as well as by phone

Interest paid yearly

Sitting comfortably in the top five is this deal from Kent Reliance, a notice account that pays 1.05% AER to those willing to give 60 days' notice to access their funds. Further additions are welcome at any time, and early access is also possible, subject to the loss of 60 days' interest.

AER

Details

NS&I Direct ISA

1.00% AER

No notice account

£1 minimum deposit

Further additions permitted

No transfers in

Unlimited withdrawals and no penalty for transfers out (all withdrawals must be made via a nominated account)

Account can be managed online and by phone

Interest paid yearly

Just squeezing into the top six is this no notice deal from NS&I, the perfect choice for those who want the security of Government backing. It offers unlimited withdrawals and further additions, as well as penalty-free transfers away from the account, and all it requires is an investment of just £1.

Information & Rates correct as at: 03.11.2016

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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It can’t be denied that the ISA sector has had a tough time of late, and it's taken a significant toll, with our latest figures showing that all average ISA rates have fallen below 1.00% for the first time on record.